Ref: Notice 2019-55

Many businesses use the meals and incidentals (M&IE) rate to substantiate out-of-town expenses without specific receipt reimbursement. The new rate is $66 per day in the US and $71 per day outside the US.

To use the per diem method, the business needs to establish that the person (owner or employee) was traveling away from home on business through a calendar or other documentation (e.g., airline tickets).

Under current federal tax law, employees are not allowed a deduction for non-reimbursed employee expenses. Therefore, the above would apply at the business level and the employee should seek reimbursement from the employer under either the per diem or actual receipt methods.

Ref: Proposed Reg Sec 1.168(k)

In September 2019, the IRS issued proposed regulations for bonus depreciation under Section 168(k). Under the proposed regulation, a contract to acquire all or substantially all of the assets of a business will allow for bonus depreciation of those assets. Additionally, the presence of a condition outside of the control of the parties, including, for example, regulatory agency approval will not prevent the contract from being a binding contract.

Furthermore, the rule applies to the sale of stock of a corporation if that sale is treated as a deemed asset sale under Code Section 338.